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Risk is faring better so far on the day as US futures look to try and snap a run of losses this week. That is keeping commodity currencies a little higher while the dollar and yen are lagging behind going into European trading.
The push and pull continues for USD/JPY just below 110.00 currently with 10-year Treasury yields also seeing more choppy appetite, bouncing back to 1.31% after the drop to 1.29% during US trading yesterday.
Elsewhere, EUR/USD is not doing much and keeping around 1.1820-40 post-ECB while AUD/USD is still holding below 0.7400 with key near-term levels @ 0.7383-94 in play at the moment and keeping price action more anchored.
It has been a tough week to make much sense of trading sentiment but that itself exemplifies the confusion in the market right now as we are sorting out dovish tapers by major central banks against a backdrop of economic risks which may be persistent.
Looking through the old flipbook, I still see oil gains capped closer to $70 amid the unchanged backdrop and also continued value in AUD/NZD shorts (policy divergence) as it is on the verge of breaking to fresh lows for the year once again.
What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.